Global Business Environment Assignment - TESCO

Added on - Dec 2020

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GlobalBusinessEnvironment
Table of ContentsINTRODUCTION...........................................................................................................................3TASK 1............................................................................................................................................3P1 Analyse key factors of cost, market, environment and competition that drive globalcommerce and trade................................................................................................................3TASK 2............................................................................................................................................5P2 Explain the complexity of strategic challenges faced by organisations when operating in aglobal environment supported by specific examples..............................................................5TASK 3............................................................................................................................................8P3 Evaluate the influences of globalisation on organisational governance and leadership,structure, culture and functions..............................................................................................8P4 Evaluate the influences of ethical and sustainable globalisation on organisational functions..............................................................................................................................................11TASK 4..........................................................................................................................................13P5 Evaluate the different ways decision making can work effectively in a global context13P6 Determine and articulate the various routes to internationalisation an organisation mayadopt, including key barriers................................................................................................13CONCLUSION..............................................................................................................................15REFRENCES.................................................................................................................................16
INTRODUCTIONGlobal business environment refers to environment of different countries where anorganisation is operating its business operations and functions in effective manner. When acompany expand its business in international market they conduct analysis of businessenvironment at global so that they able to develop strategies as well as plans according torequirements and need. Analysis of global business environment include macro and microfactors. These factors include various other elements such as geographical location, politics,technology, economic and culture (Alkhafaji and Nelson, 2013). Analysis of these factor helps afirm in developing strategies as well as plans appropriatelyin order to expand business atinternational level. Organization taken for this assignment is TESCO which is public limitedcompany operating its business in retail sector. It is founded by Jack Cohen in year 1919 and itsheadquarter is in Welwyn Garden City, Hertfordshire, England. Respective company serve theirproducts and services in various location such as United Kingdom, Ireland, India, Malaysia,Hungary, Thailand and so on. Products offer by TESCO are based on supermarket, Hypermarket,Superstore and convenience. Topics include in this report are key factors which driveglobalisation and issues occur while operating business in global market. Along with this itinclude various factors which influence operations of an organisation as well as decision makingprocedure.TASK 1P1 Analyse key factors of cost, market, environment and competition that drive global commerceand tradeGlobalisation refers to exchange of goods, services, technologies and information fromone country to another. It affects the overall functionality of any business environment. It canraise the living standard of less developed country but on the other hand reduces jobopportunities as production of goods transfer from one country to another. It is a processwhereintegration and interaction is done between various companies, individuals at global level(Amran, Lee and Devi, 2014). Globalisation is a common process in capital market, commodity,gold and oil market. Globalisation involves transferring of services, technology, resources ofcapital and data. By globalising business activities TESCO increases its market share,profitability as well as competition.There are various factors which drives overall working
environment of the country. These driving forces influence company's expansion at global levelwhich includes market factor, cost, technological advancement and many more. These majorfactors are as follows-Market factor-From past fewyears domestic market has a saturation, which provide theopportunities of global expansion. In the present context, By expanding business activities atglobal level, TESCO can capture huge market share. Consumers of every country having almostsimilar basic needs and by analysing customer needs company can easily expand its businessshare.Cost factor-There are some cost variations in every country. Cost factor determines thesales volume, production, labour and materials. TESCO consider these factors while expandingits business operations at international level. As a result these cost drivers aid the company whilebuilding their economies of scale. Cost of shipping is continuously decreasing due to bulkshipping as a result, company gain more profits.Competition-Before expanding business activity at international market, competition isthe most essential factor to analyse. TESCO diversified its functioning in various sectors likegrocery, clothing, petrol and so on(Bititci, Cocca and Ates, 2016). In order to gain competitiveadvantages while expanding business at global level, company has to adopt latest technology.Along with this, employees of the organisation should be well trained to reduce the scrapactivities. Training and development sessions are given to the staff members on regular basis.Environmental factor-Environment refers to the surroundings where business activitieshas been operated. Various environmental factors influence globalisation such as social, legal ,technological and political factors. TESCO formulates strategies according to the changes occurin the environment, which will aid them while operating at international level. As a result, it willhelp in developing the overall business.Significant impact of digital technology upon globalising business operationsDigital technology is a procedure where company use digital platform for creating,communicating and transferring information to the end users. It involves using differentprogramming tools, software's and websites by a company in order to attract more and morecustomers(Cheng, Green and Ko, 2014). Digital technology has positive impact on companiesdue to globalisation, because of technological advancement company gain more profits in theglobal market. Use of digital technology reduces cost of transportation and communication, as a
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